Where are you with the cost structure after right-sizing and Bridge divestment, and what's the outlook for OpEx and headcount?

David Evans confirmed that the investments made earlier in the year are now level set and flowing through the model. He does not anticipate additional OpEx or CapDev going forward, expecting headcount to remain stable on a broader base. “We don't anticipate any additional OpEx or CapDev in the business going forward. We'll have needs. occasionally from time to time in and around head count, but I would expect on a more kind of broader base to kind of see head count kind of staying the same, if that helps.”

Q3 Billings guidance is below Q2's actuals. Is this due to hospitality push-out, pipeline, or other factors?

David Evans explained that the Q3 guidance is consistent with historical Q2-Q3 trends and does not indicate significant concern, despite the sequential dip in billings. He expressed optimism for growth throughout the rest of the year, driven by new business. Amit Gupta added that Q3 solidifies the base for future growth. “We do see growth throughout the whole year. the rest of the year and that is an important thing to make sure that we keep in mind and we make the comment earlier around a lot of this is really consistent with what we've seen in prior years with regards to the relationship between Q2 and Q3.”

CDLX

Cardlytics (CDLX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 5, 2026

Source: earnings call transcript

Executive summary

Cardlytics Q2 FY26 — Strong Execution and Foundation Building

Cardlytics demonstrated clear progress in Q2 FY26, exceeding Adjusted EBITDA guidance and showing strong advertiser growth and churn improvement, driven by strategic investments. While facing tough year-over-year comparisons due to bank partner relationship changes, the company is focused on solidifying its foundation and leveraging its AI-forward tech platform for renewed growth. Management expressed optimism for continued growth throughout the rest of the year.

Highlights

Active advertisers grew 18% quarter over quarter.
New logo volume was up 59% quarter over quarter.
Advertiser churn improved 50% by count and 88% by dollar impact.
UK revenue increased over 10% year over year.
Adjusted EBITDA was positive $1.7 million, exceeding the high end of guidance.

Concerns

Billings decreased 34% year over year to $65.5 million due to bank partner relationship changes.
Revenue decreased 36% year over year to $36.9 million due to bank partner relationship changes.
Operating cash flow was negative $8.6 million.
Free cash flow was negative $10.7 million.
Monthly Active Users (MQUs) decreased to 185 million from 224 million year over year.

Guidance & targets

Category	Target	Timeline	Confidence
Billings	$61M-$67M high materiality	Q3 · FY26	High
Revenue	$34M-$39M high materiality	Q3 · FY26	High
Adjusted Contribution	$20M-$23M medium materiality	Q3 · FY26	High
Adjusted EBITDA	$0M-$3M high materiality	Q3 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
UK Business The UK business remains a standout performer with Q2 revenue increasing over 10% year over year. Cardlytics expanded its role in providing offers for Monzo, one of the fastest growing banks in the UK, starting July 2026.	—	over 10%	—	—

Product announcements

Product	Type	Timeline
AI Capabilities for Spending Insights	launch	—
AI Driven Campaign Publishing Engine	launch	—
Bank Personalization Capabilities via APIs	launch	testing soon
Token-Based Solutions for Embeddable Offers	roadmap	—

Deals & partnerships

Monzo Expanded role in providing card-linked offers for Monzo's UK customers.

Starting July 2026, Cardlytics now powers more Cardlinked offers for Monzo's UK customers, delivering personalized, spend-based cashback rewards directly within the Monzo app.

Major Bank Partner Temporary reduction in FI share to accelerate co-development and innovation.

One of Cardlytics' major bank partners recently agreed to temporarily reduce their FI share as a show of good partnership to accelerate co-development and innovation in their program.

Risks & headwinds

Tough Year-over-Year Comparables Until Q1 2027

Billings decreased 34% YoY to $65.5M; Revenue decreased 36% YoY to $36.9M; MQUs decreased to 185M from 224M YoY.

Mitigation:Focus on sequential growth, solidifying the business foundation, and leveraging investments made earlier in the year.

Challenges of being a small public company

Unquantified

Mitigation:Focus remains on discipline and urgent execution against strategic priorities.

QSR Category Demand Shift Ongoing

QSR spend grew 3.3% YoY (due to menu inflation), but real demand was flat. Delivery share of restaurant spend picked up more than 18% this quarter alone.

Mitigation:Using purchase intelligence to help advertisers adjust strategies from broad acquisition to retention and re-engagement, capturing customers during normal dormancy windows before spend moves out of the category.

What to watch in Q3 FY26

Solidifying Business Foundation

Q3 FY26

Current Q2 showed plan is working and core business is getting stronger.

Target Continued building supply, growing advertiser base, improving retention, and scaling capabilities.

Why it matters

This indicates the company's ability to sustain the positive momentum seen in Q2 and build a base for future growth.

As we move into Q3, our focus is on solidifying that foundation. We want to continue building supply, growing our advertiser base, improving retention, and scaling the capabilities we've invested across our platform.

Find out whether CDLX delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you provide color on the broader consumer landscape and how consumers are utilizing offers?

Amit Gupta stated that US consumer spend is strengthening, rebounding from a slight slump in May. He noted that QSR demand is flat despite menu inflation, while gas and multi-line retail show an uptick. Discretionary spending is up in pockets across US and UK consumer bases.

“Overall, we see the consumer, the US consumers spend getting stronger, especially over the slight slump in the quarter during the month of May. So we see strengthening happening there.”

asked by Unknown Speaker · answered by Amit Gupta

2 min read 6 chapters

Detailed narrative

Strategic Priorities & Execution

Cardlytics reported clear progress against its strategic priorities in Q2 FY26, with investments in people, advertiser business, and the tech platform beginning to deliver results. The company observed accelerating advertiser growth, improving churn, and stabilized supply. Key priorities include deepening bank partnerships, expanding the publisher network, driving incremental advertiser revenue through purchase intelligence, and continued investment in its differentiating tech platform.

Network & Supply Evolution

The industry is shifting towards merchant-funded, locally relevant rewards programs, with Cardlytics positioned at the center of this trend. Market interest in the Cardlytics Rewards Platform (CRP) remains strong, with positive feedback from pilot partners. Existing bank partners are expanding their card-linked offers programs, and one major bank temporarily reduced its FI share to accelerate co-development and innovation, leading to a 105% increase in total redemptions in a recent program.

Advertiser Growth & Purchase Intelligence

The advertiser base demonstrated significant growth, with active advertisers up 18% QoQ and new logo volume increasing 59% QoQ. Churn improved substantially, down 50% by advertiser count and 88% by dollar impact. Cardlytics' purchase intelligence is proving valuable, helping advertisers understand market shifts, such as QSR spend moving to third-party delivery services, enabling them to adjust strategies from broad acquisition to retention and re-engagement.

AI-Forward Technology Platform

Following investments in tech debt cleanup and building an AI-forward tech stack, Cardlytics is operating more efficiently. New AI capabilities automatically pull industry and brand-level spending insights from purchase data, used by advertisers for benchmarking and trend analysis. An AI-driven campaign publishing engine automates workflows, reducing ad campaign building time in the US by half compared to a year ago, while maintaining a 99.4% internal target hit rate.

Bank Personalization & Reach Expansion

New platform capabilities allow banks to personalize rewards for their customer segments, such as high-tier or at-risk customers, through APIs. This enables tailored reward values, offer rankings, and bank-funded offers. Additionally, token-based solutions are being developed to embed Cardlytics' offers protocol across various partner experiences, aiming to extend reach and meet more consumers wherever they are.

Consumer Spending Trends

Cardlytics' everyday spend data indicates a rebound in US consumer spend growth, reaching 3.6% year over year in June, up from 2.3% in May, primarily driven by lower-spend households. Gas and convenience spend showed resilience, increasing 11.1% YoY, while discretionary dining growth flattened. QSR spend grew 3.3% YoY due to menu inflation, with real demand remaining flat, as spend shifted significantly to delivery services.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.